I have a booth in an antique mall, they collect and pay tax on sales & take 10%. Do I file tax records too?
I used to have a shop and filed my own tax report and payments with dept of revenue. Since they do this now (antique mall) and I haven’t, and don’t intend to actively purchase for this booth at a mall-but rather, look at it as a way to “get rid of” some stuff from my house (which I’ve sold) I’m sort of looking at it as a garage sale in another place. Is that wrong? I did have to get an occupational license from the town to be there…………but I didn’t intend to deduct my rent or storage costs-so do I need to keep track of sales and inventory on my own things? If they already pay the tax on sales what is my obligation for paperwork?
I’m in Tallahassee Florida and the booth is in Havana Fl., I pay a standard booth rental- as well as the 10 commission on sales -they ALSO collect and pay the department of revenue the tax on each item. I think the first person to answer didn’t realize that
THANK YOU TO ALL WHO ANSWER
I’m in Tallahassee Florida and the booth is in Havana Fl., I pay a standard booth rental- as well as the 10 commission on sales -they ALSO collect and pay the department of revenue the tax on each item. I think the first person to answer didn’t realize that
THANK YOU TO ALL WHO ANSWER
By: jackie m
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Published by: admin on February 27th, 2010 | Filed under Keep Tax Records
6 Responses to “I have a booth in an antique mall, they collect and pay tax on sales & take 10%. Do I file tax records too?”
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February 27th, 2010 at 9:32 pm
Kansieo.com
ABSOLUTELY! Chances are the 10% that they take is for space rental but ALL income received by you needs to be reported to IRS and State in which you live in. ALWAYS good idea to keep ALL receipts for back up and keep tax records for 3 years!
March 1st, 2010 at 3:18 am
Kansieo.com
If they paid they collected and paid the sales tax, then the only thing you should have left to worry about is if you made a profit, you will need to file on that as income.
March 4th, 2010 at 2:53 pm
Create a video blog…instantly.
I too have 2 booths in an antique mall. I’m in Springfield Mo. When I last had my taxes done, I checked on this. There is a demarcation line on income. Anything less than $5000 IS considered a hobby, and you don’t have to report it. I have to renew my sellers permit, or city license yearly. The owner retains 10%, and booth rental charges. So far, I haven’t felt it necessary to do any extra paperwork on this. I wish you would of said where you were at, city wise.
March 7th, 2010 at 7:50 am
keep tax records
Yes you should file a Schedule C to report the income and expenses from the operation of the business, if you make $400 or more. Anything less than $400 can be reported on the “other income” line on the 1040. Since you have to report the income you should report the expenses as well.
ALL income must be reported; there is no “it’s a hobby” limit of $5,000.
If it is declared a hobby by the IRS you are allowed to deduct expenses up to the income you receive from the activity.
March 10th, 2010 at 2:21 am
Caffeinated Content
You are not doing this for a profit motive. Therefore you are not self-employed and will not file Schedule C.
If you consider this a hobby, then you would report your revenues (all of it) on Line 21 of Form 1040. All expenses (original purchase price, sales commissions, sales tax, transportation to the store, etc.) would be deducted from Schedule A as a miscellaneous deduction subject to 2% of your adjusted gross income.
If you are just selling your household effects on a temporary basis at this location, then you do not treat this activity as self-employment or a hobby. Instead, you report any gain on the sale of each individual item on Schedule D. Losses are not deductible. These gains would be taxed as long-term capital gains with a maximum tax rate of 15%. unless an item is considered “collectible” such as an antique. In this case, capital gains are taxed at 28%.
It’s too bad you are doing this at the antique mall, since sales of personal effects like at a garage sale are not usually subject to state sales tax.
March 10th, 2010 at 8:56 pm
Create a video blog
Sales tax is separate from income tax. It sounds like maybe they are taking care of the sales tax – as them to be sure. If you’re just selling stuff you already had, for less than you originally bought it for, you don’t have income tax issues since you don’t have a gain.